In many cases, logistics management has been used interchangeably with supply chain management. It entails planning, implementation, and the control of effective and efficient forward and reverses flows as well as storage of commodities of a given business (Lambert, Stock, & Ellram, 1998). Many companies that deal in commodities and their distribution apply this important part of management for the effective running of the business.
In this particular case, we look at logistics concerning what happens about Nokia which, according to Haikio (2008), leads the entire world in as much as mobile devices manufacturing is concerned. These devices are produced in bulk but it has to be put in mind that technology changes fast and thus the product should remain in touch with the demands of the time to avoid any unpleasant surprises. The flow of information from the producer to the users of the devices and as well from the external environment is key to how the organization changes to keep in touch with the needs of the changing trends. Let us scrutinize some of the factors putting in mind our company of consideration; Nokia.
Nokia’s supply chain is complex and is an interconnection of customers, suppliers, and manufacturers. This is an effective way of easing the flow of information and commodities to and from the customers. This is a much more effective way of management and thus greatly favors logistics management. The logistics manager is only charged with the responsibility of overseeing the information flow in whichever direction. The only challenge that comes with this extensive network is that of being able to interlink all the channels in the cheapest possible way. This is so because Nokia is not limited to the boundaries of a given country but rather operates on the entire globe. According to Nokia Siemens Networks (2009), this massive challenge has been conquered by putting in place such an extensive and efficient inventory management scheme that this area seems small.
It is important to consider that an effective inventory management system cannot be achieved unless there is enough research to collect information from the target customers and the various environmental conditions. It is a favorable working condition for a logistics manager since there is always a basis on which decisions are made. At the end of the day, the commodities released to the market are always in the range of the demands of the particular customer group. It saves time and money as exact values are always requested and as well enough are supplied. The savings associated with this are not only in terms of finances but also in terms of the warehousing space. While this is done, there is always enough shielding from sudden changes in the conditions of the market which could arise from technological advancement. At least, the company minimizes the commodities that remain in their warehouse in case they are rendered obsolete by the market conditions. The company itself has clearly outlined that it need not be caught up (Nokia Siemens Networks, 2009).
On top of this well-organized inventory management, the trends in the market are constantly conducted by Nokia to keep pace with the demands. This is another great favor to the logistics surrounding the running of the entire organization. The various distributors also put to use this information to place orders ahead of time to avoid unwanted delays. However, there is constant reviewing of the approach because it is not applicable in all conditions. The changes implemented rely on the experiences of the company and its distributors and the available records.
Yet an important enhancement to Nokia’s logistics management is the fact that their operation is closely synchronized with that of its distributors. With this close association, the accuracy of information received on both ends is very high. This system adds to the list of the many positives.
Technology in inventory management is a further positive. According to Nokia Siemens Networks 2009, Nokia is the best inventory management software. There is a view of the entire channel of the flow of commodities (end-to-end view). This enables the company to achieve superior quality inventory control while saving enough. Eventually, deployment time is quite reduced resulting altogether in efficiency.
Within the company itself, Nokia has put in place structures that enable it to be synchronized across the departments. The departments referred to are those of billing, service assurance, reporting, planning, procurement, and customer care. Between these particular departments lies clear paths that enable the flow of information. The logistic manager can put in place every section of the supply chain by being able to get feedback and communicate to the concerned department.
As earlier mentioned, the events of the future may not greatly affect Nokia as an organization because they have put in place structures that allow for sufficient flexibility. Should new technologies arise, then the company can easily fit into it and carry on with the way it conducts business.
It can be concluded that the organization and facility design of Nokia indeed does support logistic management efficiency as always there is a free flow of information which guides the operation despite the vastness of the customer base. The principle of flexibility further allows for more efficient logistics management. The answer to this question thus is yes; Nokia’s facilities are designed for efficient logistic management.
Haikio, M. (2008). Nokia: The inside story. London: Pearson Education.
Lambert, D., Stock, J., & Ellram, L. (1998). Fundamentals of Logistics Management. Garland, Texas: McGraw-Hill.
Nokia Siemens Networks. (2009). Nokia Siemens Networks Inventory Management. Finland: Nokia Siemens Networks.